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Real Estate Tips
Financing Your Home >Convertible ARMs

Many lenders are offering a type of Adjustable Rate Mortgage which will allow the buyers to convert their ARM to a fixed-rate mortgage without the expense of refinancing. There are several variations of this type of loan, so you should be informed about the various options before you decide on a loan.

Each lender places restrictions on when the ARM can be converted to a fixed-rate loan. Some allow a conversion after the first year of the mortgage, while others allow a change only on the rate adjustment dates. There is usually a fee for converting the mortgage, but it is much less than the cost of refinancing. The rate that you will pay after the conversion may be slightly higher than the going rate for fixed-rate mortgages. A real estate agent can provide you with a list of lenders who offer convertible ARMs, so that you can shop for the one that is best for you.

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Real Estate Trivia
Q 
During what months of the year do most people move from one home to another?

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Most moves occur between the months of May and September.
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John and Karen Hockenberry, REALTOR®, real estate agent and broker for West Chester, Downingtown, Exton and Chadds Ford, Pennsylvania home listings, property and land for sale - NUMBER1EXPERT(tm)

John and Karen Hockenberry
RE/MAX Main Line

1646 West Chester Pike, Suite 2
West Chester, PA 19382
610-696-3330
Fax: 610-429-9888
karenhockenberry@NUMBER1EXPERT.com


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